The U.S. Meat and poultry processing sector has undergone substantial consolidation over the past several decades, resulting in fewer but much larger plants that anchor economic activity in many rural…

The Department of Agriculture National Institute of Food and Agriculture awarded North Dakota State University $273,000 under the Agriculture and Food Research Initiative (AFRI) on May 1, 2026, to conduct a data-driven evaluation of how consolidation and federal investment in meat and poultry processing facilities affect rural economic conditions.

The project measures the economic impact of major processing plant closures on rural communities by tracking employment, business activity, and long-run adjustment in communities experiencing closures compared to similar communities without closures. It also evaluates early economic effects of federal grants awarded to support processing facilities by comparing participating plants to similar non-participating plants, estimating how investment influences hiring, operating activity, and overall capacity. The work is designed to provide producers, community leaders, and policymakers with evidence on where processing investment is most effective and which types of communities are most likely to benefit from expanded processing capacity.

The award runs through April 30, 2028, with place of performance at North River, North Dakota. AFRI is the nation's leading competitive grants program for agricultural sciences, supporting research, education, extension, and integrated grants across six farm bill priority areas including agriculture economics and rural communities. This award is a Project Grant, the standard assistance type under AFRI.

The U.S. Meat and poultry processing sector has undergone substantial consolidation over the past several decades, resulting in fewer but much larger plants that anchor economic activity in many rural regions. When one of these large facilities closes, the surrounding community often experiences job losses, business contraction, and other economic disruptions. At the same time, recent federal investment programs have aimed to expand processing capacity, encourage entry of new firms, and strengthen the resilience of local and regional supply chains. Despite the scale of these changes, there is limited empirical evidence on how consolidation and federal investment influence local economic conditions. This project provides a data-driven evaluation of these issues. First, IT measures how rural economies are affected when major processing plants close. The analysis tracks employment, business activity, and long-run adjustment in communities that experience a closure compared to similar communities that do not. Second, the project evaluates the early economic effects of federal grants awarded to support processing facilities. By comparing participating plants to similar non-participating plants, the study estimates how investment influences hiring, operating activity, and overall capacity. The goal of this work is to give producers, community leaders, and policymakers a clearer understanding of how structural changes in processing affect rural economic stability. The findings will help identify where investment is most effective and which types of communities are most likely to benefit from expanded processing capacity. The project provides practical, research-based information that can guide future decisions about supporting rural economies and strengthening U.S. Food supply chains.